Construction Equipment Procurement Summit 2015, 17th April 2015, New Delhi
New Delhi, Jan 08, 2015 – The construction industry in general has been growing at 9-11% year on year, primarily due to the strength of increased domestic and international manufacturing activities and industrial growth. There have also been increased levels of investment – especially by the Government – in infrastructure and real estate projects. Growth rates for the construction industry sectors are currently expected to exceed overall GDP growth over the next 2 years, underlying a continued strong demand.
Construction activities are many and diverse and the construction industry makes use of a large number of complex and varied equipment. As per present estimate, construction executives are willing to consider investing in capital expenditures such as replacing equipment and the construction machinery production is expected to grow by 3.3% in 2015, and orders for material handling equipment is predicted to jump 10% in 2015. Cost is of utmost importance and good budgetary controls ensure efficient project management. Construction equipment is expensive and costly to maintain.
Procurement is the complete process or a cradle to grave approach. It starts with the identification of a need and continues until either the need no longer exists (the need is not filled and goes away) or the need has been filled and the contract leading to the meeting of the need is closed. With the urgent need for improvement of the current construction procurement model, a variety of alternative models are being practised throughout the industry. Advances in construction industries in the area of procurement and business management have been improved over the years. Depending on the situation the project owner is facing, each model provides a certain level of value. This improvement will directly impact the owner because they will experience lower project cost, faster occupancy and higher quality construction projects as productivity increases. CCI Newswire
